Founders
Founders can size an incentive pool in light of future financing.
Employee equity: VSOP and ESOP in Germany · Berlin · advising across Germany
Employee equity: VSOP and ESOP in Germany
VSOP and ESOP plans can connect employees with company success, but the model needs to fit the cap table, funding strategy and culture.
Who it is for
For companies, founders and key employees.
A plan should set transparent expectations while remaining compatible with later financing or an exit.
Employees
Participants need understandable vesting, departure and payout rules.
Management
Management needs an award process that is practical to administer.
Advice
From incentive concept to understandable documents.
Plan rules, individual grants, shareholder approvals and participant communication are aligned.
Model and participants
Virtual and actual equity differ in effect, effort and employee perception.
- Define the programme objective
- Choose a suitable instrument
- Structure the pool and allocations
Vesting and departures
Vesting links the award to continuing contribution and needs fair, clear departure rules.
- Specify vesting period and cliff
- Differentiate leaver scenarios
- Explain forfeiture and repurchase
Exit and payment
Payouts should remain calculable even in a complex transaction.
- Define exit events
- Set payment priorities and calculation
- Plan reporting and settlement
Contact
Introducing a VSOP or ESOP?
Describe the team size, intended participants and preferred model. I can support design, documentation and implementation.
How we work
Connect incentives with legal mechanics.
Participants, pool, economics and exceptional cases are defined before documents and rollout are prepared.
Request counselDefine the objective and group
Incentive, participants, pool and economics are clarified together.
Draft the plan
Vesting, departures and payment events are described clearly and coordinated with tax advice.
Prepare launch
Plan, individual awards and employee communications are aligned.
Your contact: Dr. Philipp Lerch, attorney · Content last updated: 24 September 2026
Dr. Philipp LerchAttorney · Berlin
Profile
Legal precision meets commercial understanding.
As an attorney with experience at an international business law firm and an additional background in computer science, I combine corporate law expertise with a clear understanding of business models, processes, and technology.
- Former attorney at Hogan Lovells International LLP
- Two German honours examinations with a focus on commercial and corporate law
- Dr. jur. and LL.M. Corporate and Commercial Law, University of Sheffield
- B.Sc. Computer Science, Free University of Berlin
FAQ
Frequently asked questions
How does a VSOP differ from actual equity?
A VSOP generally provides contractual payment rights under the agreed terms. Actual equity involves company shares and shareholder rights. Economics, taxes and implementation effort need a case-specific review.
What does vesting mean in an employee equity plan?
Vesting defines when rights accrue or are retained. Leaver rules address what happens when a participant departs.
What should be decided before making offers?
Participant group, pool size, payout triggers, vesting, departures and future funding rounds should be aligned. Tax consequences require specialist input.
Contact
Introducing a VSOP or ESOP?
Describe the team size, intended participants and preferred model. I can support design, documentation and implementation.